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- $174.60
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- $175.73 – $185.18
DDOG fell -8.1% in a broad software selloff, with the move looking more sector-driven than company-specific. The business still shows 31.5% TTM revenue growth and 79.5% gross margin, but a 443.9 PE and 26.13 PEG leave the stock sensitive to swings.
DDOG
DATADOG INC - CLASS A
As of Nov 2, 2026
54/100
Worth keeping an eye onHealth ScoreWhat drove the move
DDOG moved -8.1% even as the S&P 500 fell -1.8% and the Nasdaq 100 fell -3.5%, so the stock underperformed a weak tape. The clearest driver is sector-wide pressure in software and cloud names: the facts cite a week in which Datadog fell 8.1% alongside Cloudflare as a software selloff hit cloud stocks, and another session where AI-spending worries hit cloud names after weak tech-giant results. That pattern fits the size of the move better than the broad market does.
How unusual is it
This is more than ordinary market noise, but it is not tied to visible fundamental deterioration in the facts. Growth is still strong at 31.5% revenue growth TTM, 35.6% latest-quarter revenue growth, and 40.1% EPS growth TTM, while gross margin is 79.5%. The offset is valuation: PE 443.9, forward PE 80.2, and PEG 26.13 show a very rich setup, and a beta of 1.53 points to above-average sensitivity. In that context, the stock can move sharply on sentiment, but the move is happening against intact operating momentum rather than weaker reported results.
Earnings setup
The next earnings date is not available this period, so I cannot place the report on the calendar. What the market is still waiting to learn is whether 31.5% TTM revenue growth and 35.6% latest-quarter growth can continue, whether operating margin can build on the current 0.4%, and whether the company can keep net margin above 4.5% while spending on product and go-to-market. The analyst distribution is still constructive at 16 strong-positive, 35 positive, 3 neutral, 1 negative, and 0 strong-negative, which suggests expectations remain favorable even after the recent software selloff.
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